Continental AG to invest almost $700 million in new tire plants

Continental AG wants to invest over 500 million euros ($695.7 million) in new tire plants, CEO Elmar Degenhart told German weekly Frankfurter Allgemeine Sonntagszeitung in an interview that was published last Sunday.

The German automotive supplier regrets that it didn’t invest as much for tires in the last five years. He said that the company is “catching up on that now." Degenhart said that capacity will be doubled in Brazil and that China will start up next year.

He said that the company is talking about a cooperation deal in India and is even thinking about starting its own production in Russia. In addition, Degenhart expressed optimism about the company's 2010 outlook.

It raised its top-line outlook in July, asserting that it estimates full-year sales to increase by about 15%. Degenhart has described this figure to be “conservative,” according to the newspaper’s report. Continental AG is expected to post third-quarter financial results on Nov. 3.

"We are doubling capacity in Brazil, and China is starting up next year. We are also discussing a cooperation in India and are considering our own production in Russia," Degenhart told the publication. [via autonews - sub. required]